How To Do a BAS Statement in 11 Steps – A Complete Guide

As of June 2023, Australia is home to nearly 2.6 million actively trading businesses.

A significant number of those businesses are subject to Business Activity Statement reporting.

Think about it: that’s millions of “scorecards” the ATO needs to track to keep the game fair and square.

Why? To make sure everyone contributes their fair share to public services and infrastructure. 

So, while it may feel like a chore, completing your BAS is a vital part of being a responsible business owner in Australia.

Do you need help figuring out how to do a BAS statement?

In this guide, you’ll find 11 steps to make the ATO BAS reporting process as painless as possible. 

Step 1: Gather All Necessary Information

For an accurate and complete BAS, collect the following essential documents and records:

1. Sales invoices
2. Expense receipts
3. Bank statements
4. Employee wage records
5. Records of GST credits or payments

Step 2: Verify GST Registration

Before you fill out your BAS, you must confirm your GST registration status.

You could face penalties if you’re not registered for GST, but you should be. 

To verify your status

1. Log into the Australian Government Business Register Service or your myGov Business account.
2. Check the section that details your current registrations.
3. Look for “Goods and Services Tax (GST)” to confirm your status.

Step 3: Access the BAS Form

Log into the ATO website under “Sole Trader” or Business” with your myGov ID. Your pending BAS form will be under the “Reports and Forms” section.

Now, let’s find out how to fill out each section of the form.

Step 4: Calculate GST Amounts

It’s time to crunch some numbers!

You’ll need to calculate the GST amounts for your sales and purchases to know precisely how much GST you’ve collected and how much you can claim back on your purchases.

These figures will form the backbone of your BAS.

To calculate GST for sales, divide your total sales by 11.

For example, if your total sales are $11,000, the GST would be $11,000 ÷ 11 = $1,000.

To calculate GST for purchases, divide your total purchases by 11 as well. So, say you spent $5,500 on business purchases, the GST would be $5,500 ÷ 11 = $500.

Step 5: Report PAYG Withholding

Now, onto reporting Pay as You Go (PAYG) withholding, the tax you’ve withheld from all employees’ wages. 

1. Add up all the tax amounts you’ve withheld from your employees’ pay during the reporting period.
2. Confirm these totals against your payroll records and wage summaries.
3. Find the section labelled for PAYG withholding on the BAS form. Under “W1”, enter the total gross wages paid to your employees for the period. Under “W2”, enter the total amount of tax you’ve withheld.

Step 6: Include Other Tax Obligations

You might have other tax obligations to include on your BAS, such as fuel tax credits and luxury car tax.

To claim fuel tax credits, multiply the eligible fuel quantity by the relevant fuel tax credit rate. Then, report these under the BAS form’s “7C” label.

Luxury Car Tax (LCT) is imposed on cars with a GST-inclusive value above the LCT threshold, equalling 33% of the amount that exceeds said threshold.

Report this amount under the “1E” label on your BAS. 

Step 7: Double-Check for Accuracy

Reviewing your BAS before submitting it is crucial to claim the correct GST credits and avoid penalties from the ATO.

Double-check that you’ve entered

1. GST amounts in the designated boxes labelled “G1”, “G10”, and “G11”.
2. PAYG withholding under “W1” and “W2”.
3. Any other applicable taxes, like fuel tax credits and luxury car tax in their respective sections, such as “7C” or “1E”.

Step 8: Lodge the BAS and Make the Necessary Payments

Once you’re sure everything is accurate on the form, click “Submit”. You’ll then receive a confirmation message with a receipt number for your records.

The due date for your BAS lodgement and payment will be displayed on your statement. 

If your business has a GST turnover of $20 million or more yearly, you’ll have to lodge a BAS monthly.

If you turnover less than that yearly, you’ll report quarterly. 

Follow the prompts to pay your BAS tax in any of the following ways:

1. Electronic transfer to the Reserve Bank of Australia
2. Visa, MasterCard, or American Express
3. BPAY
4. Direct debit from your bank account 
5. By cheque sent to “Australian Taxation Office, Locked Bag 1936 Albury, NSW 1936”
6. In person at any Australia Post

Step 9: Retain Records

The ATO will send confirmation of your payment. Keep this record for future reference and compliance purposes.

Step 10: Stay Compliant with BAS Reporting

Follow these tips to stay on top of reporting your BAS correctly.

1. Prepare early: Gathering your financial records in advance will save you from last-minute scrambling.
2. Double-check calculations: Always verify your numbers to minimise mistakes that could cost you later.
3. Know your reporting cycle: Whether you’re reporting monthly, quarterly, or annually, knowing your deadlines helps you avoid late fees.
4. Consider payment plans: If a lump-sum payment will strain your budget, look into the ATO’s payment plan options to ease the burden.

Step 11: Seek Expert Assistance

Consulting a BAS agent offers several advantages.

1. Expertise: BAS agents are well-versed in tax laws and can help you navigate complex regulations.
2. Accuracy: Their experience ensures that your BAS is completed correctly, reducing the risk of errors and penalties.
3. Time-saving: An expert can handle this task much faster than you might be able to, freeing you up to focus on other aspects of your business.
4. Audit support: In the event of an ATO audit, having a BAS agent on your side will make the process smoother and less stressful.
5. Cash flow management: They can also advise on managing your tax obligations in a way that’s easier for your business’s cash flow.

As leading experts in BAS lodgement in Australia, the team of BAS agents at GeekBooks can help you with all of the above! 

Take Control of Your BAS Reporting Today!

Ready to get ahead in managing your BAS? 

Don’t leave it to chance. With GeekBooks by your side, you can confidently meet your ATO BAS reporting and BAS lodgement requirements while optimising your financial strategy. 

Take the first step toward peace of mind by reaching out to GeekBooks. Complete our online booking form or call 02 9158 3591.

Act today, and breathe easier tomorrow!